This paper aims to assess the economic impact of the IMF&#x2019;s support through its facilities for low-income countries. It relies on two complementary econometric analyses: the first investigates the longer-term impact of IMF engagement&#x2014;primarily through successive medium-term programs under the Extended Credit Facility and its predecessors (and more recently the Policy Support Instrument)&#x2014;on economic growth and a range of other indicators and socioeconomic outcomes; the second focuses on the role of IMF shock-related financing&#x2014;through augmentations of Extended Credit Facility arrangements and short-term and emergency financing instruments&#x2014;on short-term macroeconomic performance.

Disclaimer: The views expressed in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.

Preface

This paper is based on studies that were conducted in 2012 and 2013 as part of the IMF’s review of its lending facilities aimed at low-income countries. The work was headed by Chris Lane and Christian Mumssen, with Yasemin Bal Gündüz, Christian Ebeke, and Linda Kaltani responsible for the econometric work and Joseph Thornton for much of the drafting. Burcu Hacibedel and Nkunde Mwase provided case studies, Vera Kehayova provided research assistance, and Merceditas San Pedro-Pribram finalized the text, figures, and tables. Hugh Bredenkamp provided overall supervision.

The authors are indebted to Dane Rowlands and Graham Bird for their helpful thoughts on the econometrics, as well as to numerous members of Fund departments for their detailed comments on the paper. David Einhorn edited the paper; Joanne Johnson and Michael Harrup of the Communications Department coordinated publication; and Jeremy Mark of the same department offered valuable assistance to the authors in navigating the publication process. The paper also builds upon previous work by IMF staff members on the role of the institution in low-income countries.

The opinions expressed in the paper are those of the authors, and do not necessarily reflect the views of national authorities, the IMF, or its Executive Directors.